Pryce Corp. 2014 net income nearly triples to P288M

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PRYCE Corp. reported a nearly threefold increase in its net income after taxes in 2014 driven mostly by the strong performance of its liquefied petroleum gas (LPG) business despite price declines.

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In a statement, the company said its net income rose to P287.67 million last year from P98.94 million in 2013, resulting in earnings per share of P0.1438 each.

“The bottom-line figure could have been higher without the slide in prices of LPG,” Pryce said.

Revenue rose 62.5 percent to P6.35 billion from P3.91 billion in the previous year, mainly on strong LPG sales under the PryceGas brand. Revenue was also boosted by the sale of a commercial lot in Iligan to a certain mall developer amounting to P627.83 million.

LPG sales accounted for 83.2 percent of total revenues, while the rest was contributed by its property and hotels and industrial gas ventures.

Pryce’s LPG revenues — under units Pryce Gases Inc. and Oro Oxygen Corp. – rose 57.4 percent from a year earlier to P5.28 billion. By volume, LPG sales increased to 113,924 metric tons (MT) from 63,590 MT in 2013.

Pryce said its LPG sales could have been higher were it not for the decline in the international contract price (CP) of LPG, which fell from $1,017 per MT in January to $835 in June and to $564 in December 2014.

Its real estate revenues, including from hotel operations, reached P666.5 million last year, generated mostly by the company’s dozen memorial parks in major cities in Mindanao.

Industrial gas revenues, on the other hand, declined by 5.2 percent to P391.2 million as Pryce reduced its prices due to tighter competition despite selling more industrial gas cylinders last year. The company said it sold 934,085 cylinders last year from the previous year’s 897,594 cylinders.

Through its flagship brand PryceGas, the company said it has cornered 11 percent of the total LPG market nationwide, amounting to 113,294 metric tons of LPG sold last year. Pryce expects to further expand its LPG business in the next few years.

Incorporated in 1989, Pryce is primarily a real estate and hotels firm with LPG subsidiaries Pryce Gases Inc. and Oro Oxygen Corp. Oro Oxygen operates its LPG business in Luzon.

The company boasts of having the biggest LPG storage capacity in the Visayas to Mindanao area, with seven marine-fed terminals and nine refilling plants equivalent to an aggregate capacity of 10,350 MT.

In Luzon, it has a recently-completed 6,300-MT marine-fed terminal in the coastal area of San Fabian, Pangasinan and 22 other refilling plants with storage capacities of up to 120 MT.

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